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First Magnus Files Chapter 11

By

Joseph Rebello

Updated Aug. 21, 2007 4:56 p.m. ET

First Magnus Financial Corp., an Arizona mortgage lender that shut down operations and laid off nearly 6,000 workers last week, on Tuesday filed for Chapter 11 bankruptcy protection from its creditors.

In a filing with the U.S. Bankruptcy Court in Tucson, Ariz., the privately held company listed $812.5 million in liabilities and $942.1 million in assets. The company said it has between 25,000 and 50,000 creditors.